Say Goodbye to Quiksilver, Billabong, Volcom Stores

The company that operates Quiksilver, Billabong, and Volcom stores in the US says it can no longer compete with fast-fashion rivals in a tough retail environment. Liberated Brands has filed for Chapter 11 bankruptcy protection, and it plans to permanently close more than 100 stores on the US mainland selling the iconic surfing- and skateboarding-themed clothing brands, 9News reports. Nine outlets in Hawaii are under review, the company says.

• "Volatile global economy" was a factor: Liberated has "worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll," the company said in a statement.

• Fast-fashion competition: In bankruptcy filings, Liberated CEO Todd Hymel said retail operations were under pressure from a "dramatic rise in interest rates, persistent inflation, [and] supply chain delays," CNN reports. He also blamed competition from fast-fashion rivals that could react more nimbly to changing trends. Consumers can "cheaply, quickly, and easily order low-quality clothing garments from fast-fashion powerhouses and have such goods delivered within days," he said, per 9News.
• A quick rise and a quick fall: Liberated, founded in 2019, operated the brands under a licensing deal with Authentic Brands Group, Bloomberg reports. It expanded quickly during the pandemic-era spending boom and suffered as consumer spending slowed down.
• The brands aren't going away: Authentic says the brands will be licensed to other operators. The company tells CNN that Billabong and other brands will be sold online, in department stores, and at specialty retailers, "ensuring a more agile and resilient future."
• Aussie business mogul is surprised: Australian entrepreneur Dick Smith says he's surprised that the operator of famous Australian brands Billabong and Quiksilver ran into financial trouble. "There's pressure on the companies to expand forever, and that's our system of capitalism," he says, per news.com.au.

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